We look at the export journey of Shuttle Lighting Control Systems (Pty) Ltd (branded as a Shuttle), a South African company with over 25 years of experience in the lighting control industry. Martinhus, Shuttle’s technical director, shares valuable tips for aspiring exporters in South Africa, drawing from their experiences in navigating regulatory landscapes, understanding competitive environments, and building international client relationships.
1. Can you please share a bit of background information about Shuttle Lighting?
Shuttle Lighting Control Systems (Pty) Ltd was incorporated more than 25 years ago and specializes in the in-house design and development, local manufacturing and distribution of a range of “Shuttle” branded, as well as white-labeled mass production consumer products. Shuttle Lighting introduced several patented lighting control products to the South African market, but the introduction of our universal dimming technology during 2004, when the concept and application were still very unknown, unlocked its potential when LED lamp technology became widely available. As a result, Shuttle’s subsequent focus has been mainly on LED lamp dimmers for residential, hospitality and industrial lighting applications while continuous innovation in this market segment and compliance with all legislative requirements has secured its position as local market leader.
2. When did you realize your business was ready for exporting? What were the key indicators?
After reaching a pivotal local market penetration, we had confidence that our products would meet the high standards of reliability and performance required for export, and our market research showed that our product pricing was very cost competitive abroad. We then proceeded with the certification process for EU, Australia/New Zealand and UK standards. The key indicator was when we started receiving requests from South African electrical contractors stationed abroad to supply our products into their projects.
3. Can you share some tips for finding and researching international markets? Where did you find your best leads?
Our leads originate from a number of different sources. Electrical contractors typically prefer to purchase their supplies from a particular wholesaler, which serves as a primary lead. Due to our search engine ranking and product niches, we frequently receive enquiries from potential clients abroad. Internet market research is very time-consuming but very important. Firstly, identify gaps in the international markets where your product has benefits above competitors or can fill an unoccupied space; secondly, identify potential clients; lastly, identify a suitable person in the organization to contact. Thereafter, it’s a meticulous process of e-mailing and calling the relevant company and person with a concise message.
4. What was your biggest initial fear or concern about exporting, and how did you address it?
The South African regulatory requirements for our product grouping overlap to an extent with the requirements in our targeted territories abroad. There are several requirements, most notably environmental protection legislation, which are not required in South Africa. The biggest concern was compliance with these regulations for which there are no local testing and certification authorities. We, therefore, utilized certification authorities in our target regions abroad and couriered samples to obtain the required compliance certificates.
5. Did you encounter any unexpected obstacles, and how did you adapt?
Besides the initial cost and lengthy time involved in certification for the various international regions, we did not really encounter major obstacles to export. We, however, did learn a number of lessons, most notably that there are various trade agreements which, once registered, provide for a reduction or exemption of import duties which effectively reduces your product pricing for the client abroad. Import Export License has been instrumental in explaining the procedures and requirements in detail, and thankfully, it has successfully managed the complete registration process for Shuttle.
6. Did you attend trade shows or participate in international business development programs? If so, can you mention any that were helpful?
The international market for Shuttle’s products is a very focused and congested space dominated by large international corporations. We found that attending suitable trade fairs abroad provides us with the best insight into possible niche areas, advances in technology and market trends. The Frankfurt “Light + Building” trade fair for lighting and building services technologies is likely the most comprehensive fair for anyone that operates in such industries and is worth the visit.
7. What advice do you have for aspiring exporters in South Africa?
Ensure that your products are fully compliant with all the legislative requirements in the target countries. Ensure that your products are reliable and require minimal after-sales support. Study potential competitors and become familiar with all aspects of their products to be able to clearly identify the advantages of your offering. We discovered that there may be unofficial country- or even region-specific product requirements which are not described in legislative requirements. If a viable market has been identified, then send pre-production samples to the target clients for a technical evaluation and harvest as much feedback as possible. It is sometimes a lengthy and challenging process to find international clients, but don’t be despondent; keep knocking on all doors!
